Copy Protection
"The Perilous Irony of the Digital
Age"
A few days ago I wrote an editorial in Page 2 on how we
might take a new look at copy protection. Against the wailing of cynics who think I give
humanity, at least as currently civilized, more credit then any copyright holder at risk
should ever do, I postulated that in the digital world that we are entering we had best
not become the termites chewing away at our own digital foundations anymore than we would
promote incest. My intent was to spark a debate about our behavior, or what we need to do
to correct it in order that our global character allows for the flowering of the fully
digital age. The way that we behave will dictate the entanglements we must
endure in hardware and software, and that will set all kinds of boundries and limitations.
We cannot afford to have those limitation imposed upon us by bad behavior. "Well,
easy for you to say,"you say. "I can't even get my dog to heel and you want some
kind of new standard of human behavior--a new taboo to keep us from self destructing.
Ha!"
Jim Burger, an attorney in Washington DC has a long list
of achievements and who is often heard on this issue of DTV, represents numerous clients
in the communications field. He has taken my bait and provided us with his view that
considers a bit of the human factor in copyright protection. Now let's hear from you. (If
you need a copy of the original editorial email
me.)
Dale Cripps
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Introduction
Dale and I have exchanged many notes debating DTV issues. Dale and I have had
honest disagreements about DTV. Dale's recent editorial however, contains much I can agree
with. I also wholeheartedly agree with Jerry Rutledge's response. I hope I have something
to contribute to this discussion since we all appear to be on the same side of this issue.
First, my usual caveat - these are my own opinions and not necessarily those of my firm or
my clients. Second, I believe that intellectual property is our cultural cornerstone and
an extremely important economic driver. Indeed, the $800 billion U.S. information
technology industry's primary product is intellectual property.
Having said that, I had several recommendations for the content industry. The first, from
Doug Adams Hitchhiker's Guide to the Galaxy is "Don't' Panic." Since at least
the 1908 introduction of the player piano, the content industry has wrung its hands about
every new technology, just as they are doing today with DTV. This was true with
introduction of the record player, the radio, the television, the cassette recorder, and
VHS recorders, and so on. Each technology turned into a gold mine for the content
industry.
The Motion Picture Association of America (MPAA) gets upset when people point to its
President's (Jack Valenti) statement to Congress about the VHS in 1983. He said, the VHS
"is to the American film producer and the American public as the Boston Strangler is
to the woman alone." Pre-recorded VHS movies went on to be one of Hollywood's biggest
money earners. Indeed, with the smashing success of DVD, home video is the most profitable
part of their business. My good friends in the movie industry point out that Jack was only
talking about the record function, not the playback function. Apart from the fact that I
can't find such a reference, it was the combination of both that made the VHS so popular
and in most of our homes, creating the market for home video.
So, DTV and the digital recorders coming on the market are not a threat but a challenge
and an opportunity. As will be the Internet. Movie sharing over the Internet is not a
major economic threat today, the time to download a high-quality digital movie is just
simply too long. Also, the reliability of the connection is a problem with big files.
(I've been trying all week to download a 53 megabyte Canadian government document on my
fast corporate network without success. Image trying to download a 2-gigabyte movie?) One
hopes, of course, that over time the bandwidth problem will be solved. The question is
whether the movie industry will be ready with an honest digital download market when that
happens.
The Four Step Plan
I believe there are four steps to dealing with the problem as stated by the content
industry. Here they are in order of importance and execution:
* Create Honest Markets
* Education
* Enforcement
* Technical Speed Bumps
Dale's overlay of what I would call ethos -concerns about impact of any cop protection
scheme on the consumer and the consumer's ethical standards - are deeply embedded in each
of these steps. All are dependent upon honest consumers. Who would not seek to take
content without compensating copyright holders as long as they had fair, attractive
alternatives and understood what is at stake.
Honest Markets
Today, the download of digital music is widespread. It is difficult, and I would argue
fruitless, to remonstrate consumers for trading music on peer-to-peer systems when they
have no reasonable alternative. While creating a legitimate system that will appeal to the
honest consumer is not easy work, it must be done. The music people are smart people, and
the consumer electronics and computer industry would gladly help them create effective,
reasonable online music markets. It just hasn't happened yet. One hopes the video industry
is further ahead of the curve. Let's hope they will have the honest market ready long
before bandwidth becomes a threat. Wouldn't it be nice if a box on top of your set (forget
how the bits get there) enabled you to watch the movie you want to watch in
"glorious" HD at 8:13 p.m. Saturday night when you and spouse have finished
dinner and are ready to watch it? (Rather than the movie the Network wants you to watch at
the time they want you to watch it.) (Don't worry Dale, it won't make your guide
obsolete!)
The first step in protecting music and movies and rewarding the creators of the
intellectual property, is the creation of honest markets. If video distributors could
offer those services at reasonable prices, I think like VHS and DVD, they would make lots
of money and satisfy honest consumer desires. This sets the stage for consumer education.
Education
I am gravely concerned we are raising a generation of kids with no respect for
intellectual property, if they even know what it means. I blame the music industry for
this. Earlier this year I was invited to speak about Napster to a group of high school
leaders from around the country. I closed the door, said I wasn't from the copyright
police. I asked how many routinely downloaded and burned CDs. Every hand flew up. I said,
don't you think its wrong to take someone's intellectual property without paying for it?
The answers I got rocked me, but unfortunately made sense.
They responded with, do you know what you are saying? I might hear a song on the radio
station I like. By the way, they said, we know the record industry bribes the radio
stations to shove the latest singing Barbie or boy band down our throats. If get it as you
say I should, first I have to get my mom or dad to drive me to the mall. Then, assuming CD
is there, I have to pay from $16 to $21 for the CD. I get it home and I listen to it. Many
times, there's the one good song I wanted and 11-12 pieces of garbage. By the way, we know
the record companies screw artists, so we're not taking money from them. Bands only make
money touring. I think we've been overcharged long enough. No, I do not feel guilty, they
said.
I went on to explain the history of copyright and how they actually owned copyrights. I
told them how important copyright is to our culture and economy. Frankly, I think I
couldn't convince them. I could not defend current music industry practices, nor give them
a reasonable alternative.
Once the content industry provides reasonable alternatives, I am a firm believer in
launching a major copyright education campaign. I believe that the computer industry would
participate in that effort. (There are, however, a few signs that the music industry is
working to make PressPlay and MusicNet into real alternatives. Today they are not.)
Enforcement
The owners should defend copyrights. I have, however, a difficult time cracking down on
ordinary consumers (as opposed to commercial pirates) when we haven't offered an honest
market alternative nor educated them. Given information and reasonable alternatives,
enforcement will be unnecessary. But there will always be people that want something free
and will not turn to legitimate reasonable alternatives. Therefore, I think that
enforcement is an important, if third level, element.
Technology "Speed Bumps"
Once honest markets, education, and enforcement are in place, I do not object to the
content industry putting technology in their content that helps remind honest consumers to
be honest. First, however, it will have little effect if the honest consumer can't be
directed to the reasonable alternative. Second, the content industry must sponsor and pay
for the technology. Third, technology is not capable of being the first line of defense.
Hackers love hacking as much or more than Dale and many of you love HDTV. Challenging them
with "effective" technology is like putting the cookie jar on a higher shelf.
You know the kid will climb up and attempt to get the cookies. Thus, all such technology
can do is remind the honest consumer that they are about to do something they shouldn't
and for which they have a reasonable alternative. But, if the protection technology
interferes with legitimate expectations (e.g., prevents you from time shifting a TV
program), consumers will revolt and you will push them to illegitimate sources of content.
Conclusion
In the end, I am convinced as I think Dale is that consumers want to do the "right
thing." Content owners need to step back, relax, and figure out how to make the new
technology work for them. "Locking up" the content never has worked. But
reasonable protection has worked when the consumer perceives value in the content.
Jim Burger
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PROGRAM NOTE
Check your programming times and make sure you note that CSI is
9/8c.
Hi Dale,
you might want to check the time slot for this show.
traditionally it is on at 9pm Eastern after Survivor.
You will notice that you have a 1 hr gap in your CBS listings.
take care,
Peter M.Wilson
***
CEA Sues FCC Over Tuner Mandate
The Consumer Electronics Association has gone to court to overturn federal rules
that gradually require inclusion of digital tuners in nearly all new TV sets.
The CEA fought the mandate as both costly and ineffective while the Federal Communications
Commission was debating the issue earlier this year. After the rules were adopted in
August, the association promised a court battle, and it took the first step Oct. 11 by
filing suit in the U.S. Court of Appeals for the D.C. Circuit. (Full
Story)
(Editors note: This was a lively discussion at the CEA Fall Conference. Zenith's John
Taylor, a chief advocate for the mandate, and Mitsubishi's Bob Perry, in favor of other
alternatives, both expressed themselves to the LA Times there to prepare a story on this
turn of events. Zenith's position is clear--they are beneficiaries for royalties
from ATSC 8-VSB tuners, so the more the merrier. Mitsubishi is not in the smaller screen
business and so could be negatively impacted by any defocusing on big screen DTV. The view
that cable has to settle with CE first is tied into this contest of wills.Taylor's view
was that it was unfortunate to see their trade association enter into such a contest as it
would give the appearance of being anti transition to DTV Bob Perry has promised us
a piece once he has accomplished his part of the mission to settle the cable-ready TV
business issue which is still obstructing the transition.)
Reader Mail
Best comment today on the Tips List
----- HDTV Magazine Tips List -----
I hate to say it but I agree with Charlie Ergen. If you want to view your locals now in HD
get an antenna. The reception is better than anything I am getting on Dish with the
exception of Discovery HD Theater. I would rather save the limited bandwidth for future
programming such as ESPN HD, which can not be picked up via an antenna.
For those that can not pick up their local stations via an antenna, the laws need to be
relaxed so that waivers are more easily granted.
I have found that since having my rooftop antenna installed that I am watching less Dish
programming which is now making me reconsider carrying the Dish "Everything
Package". I think Charlie may want to rethink his logic because he may get what he
is wishing for only to find that customers will cut back Dish's services once they find
that after the initial investment of antenna installation that the local programming that
they are receiving is of a higher quality than that offered by cable or satellite and it
is free. Customers after all also have limited bandwidth in their discretionary spending.
Just my opinion.
Dallas Packer Hudson, Ohio
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